31 May 2021
Worst bitcoin month since late 2018
May has surely been challenging for many investors. The bitcoin priced closed the month down 35%, which is the sixth-worst month in bitcoin’s history.
The bitcoin price fell 35% in May, marking one of the worst months in bitcoin’s history. After 6 months of appreciation, the bitcoin price has now declined two months in a row. Data going back to July 2010 is presented in the chart and shows the monthly return of the bitcoin price. The worst month in history was in August 2011*, when the price decreased 38.45%.While previous bull cycles also saw large corrections, a monthly performance of -35% is concerning. In the 2017 runup, no months exceeded a decrease of 10%. However, in 2013, we saw similar trends, with a two-month correction before continuation to the upside.While no previous cycles can be used to predict what’s to come for the leading cryptocurrency, it can surely be an interesting exercise. Is the current price action equivalent to what we saw in 2013, or are we entering a bear market and approaching a year like 2018?